Pre-open Tuesday 12th October
Monday generated a very narrow, overlapping/higher Value Area on very low volume. Overnight ES printed down to 1151.75 but has recovered back above First Level S/R. It looks like dips are still being bought – there has been no Responsive Selling marked for seven sessions and no Aggressive Selling marked for more than a month.
First Level S/R stays at 1155.5 (minor poc established through last week’s price action).
More important support stays at 1139 (8week poc).
Sentiment: My version of the Rydex Assets Ratio was up from 1.65 to 1.93 which is quite a jump. If the ratio reaches 9.7 it will print higher than the peaks it reached at the June and August price highs. Assets in the Bear Funds I follow fell to the lowest level since 18th May. VIX closed at 18.96, the lowest close since late April and the first time since January it has closed below the 40period Lower Bollinger Band.
Supporting Charts
– USDJPY: prints very close to last week’s low
? EURUSD: Price osc lower for three days since the major resistance was reached at 1.3965, the 1/2R off the 2008 high.
? UDX: New eight month low last week but Price Osc higher for last two days.
+ TLT: currently printing just below the major 1/2R level resistance at 105.22
imo these charts are mixed and the ST bias for equities is uncertain.
